China’s Shandong Electric Power Construction Corp (SEPCO) will install two booster gas compressor stations for Aramco, reported Gulf Business News.
Saudi Aramco had contracted the Chinese group for its master gas system (MGS) expansion plan.
SEPCO is scheduled to complete its work by the end of 2016, rising capacity to 9.6 bcf/g from the current 8.4b.
MGS was built in the mid-1970s to make use of associated gas from oil wells and use it for domestic industries.
According to Reuters SEPCO is likely to win a second MGS contract from Aramco to help expand the capacity of the main gas pipeline across Saudi Arabia.
A source revealed, however, that JGC Gulf, a subsidiary of Japan’s JGC Corp, had also submitted a rival offer to SEPCO.
Saudi Aramco said it did not comment on its business plans and did not even disclose the value of the Chinese contract.
SEPCO could not be reached for comment while Japan’s JGC Corp also declined to comment, but sources said that SEPCO’s price was either below $700 m or below $800 m.